The Texas Department of State Health Services has finalized new rules governing consumable hemp products in Texas. The rules amend Chapter 300 of the Texas Administrative Code and introduce several changes that will directly impact manufacturers, retailers, and distributors operating in the state.
More than 1,400 public comments were submitted during the rulemaking process, many from businesses within the hemp industry. Some adjustments were made, but many of the rules we argued against made it through. Now that the final rules have been released, companies will need to review the changes carefully and begin evaluating how they may affect operations moving forward.
Important Links:
Below is a breakdown of the key updates that are set to go into effect on March 31, 2026.
Background: Governor Greg Abbott issued Executive Order GA-56 on September 10, 2025, directing DSHS to amend its rules to prohibit sales to minors, add age verification requirements, update testing requirements, and update recordkeeping requirements.
1. Age Restrictions & ID Verification
DSHS prohibits Consumable Hemp Licensees and Retail Hemp Registrants from selling consumable hemp products to customers under the age of 21 and requires valid proof of government-issued identification prior to purchase. Businesses found in violation may have their license or registration revoked. These are codified as new rules (§300.701 and §300.702).
2. Fee Increases
Manufacturer licenses now cost $10,000 per facility annually (§300.202), and retail registrations cost $5,000 per location annually (§300.502).
A person who files a renewal application after the expiration date of the current registration must pay an additional delinquency fee of $1,000.
This is a massive increase from the previous fees of $258 for a manufacturer license and $155 for a retail registration.
3. Testing — THCA Now Counts Toward THC Limit
The state now includes THCA in the calculation of total THC, meaning testing must account for the conversion of THCA into delta-9 THC when determining whether a product exceeds the 0.3% legal THC threshold. This is a significant change that will affect high-THCA flower and other products that previously passed testing (§300.301).
- Updated definitions found here.
- The formula used is: Total delta-9 THC = (0.877 × THCA) + delta-9 THC.
Hemp businesses must also complete two mandatory rounds of testing before products reach consumers (§300.301).
- Before any hemp plant is processed or used in manufacturing, a representative sample must be tested for:
- Full cannabinoid profile, including all acids
- Heavy metals, pesticides, and microbial contamination
- Any other substances required by DSHS
- Delta-9 THC, total delta-9 THC, and total THC levels
- Before any consumable hemp product — including hemp-derived ingredients used in further processing — is sold, distributed, or introduced into Texas commerce, a representative sample must be tested for:
- Full cannabinoid profile and concentrations
- Delta-9 THC, total delta-9 THC, and total THC levels
- Residual solvents, heavy metals, pesticides, and harmful pathogens
- Every test must be documented in a COA that is available to DSHS electronically upon request. Each COA must include:
- Lab information- Name, address, and contact info
- Business information – Cultivator/processor/manufacturer name and address
- Sample details – Sampler ID, matrix type, lot ID number
- Testing dates – Date received, dates analyzed, and corresponding results
- Methods used – Analytical methods, instrumentation, LOD and LOQ
- THC results – % of delta-9 THC, total delta-9 THC, and total THC per container
- Validity markers – Expiration date and QR code verifying lab authenticity
- Uncertainty data – Measurement of uncertainty analysis parameters
4. Record-Keeping & Batch Tracking
New rules require much more detailed documentation:
- Master production records (§300.204) — standardized records for each product type to ensure uniformity across batches.
- Individual batch production records (§300.205) — records for every single production run.
- Source & traceability records (§300.206) — documentation of raw materials and ingredients. All raw materials must come from approved sources.
- Recall plans (§300.207) — manufacturers must maintain a written product recall plan.
- Consumer complaint logs (§300.208) — formal procedures for documenting and investigating complaints.
5. Labeling & Packaging
- Labels must now include more comprehensive warning statements (§300.402).
- A QR code leading to the COA is not required, but a URL is required. a QR code can be used in addition to the URL (§300.402).
- Labels that mislead consumers into thinking products don’t contain hemp-derived cannabinoids or that they are intended for medical use are prohibited (§300.407).
- New packaging requirements mandate that products be tamper-evident, child-resistant, and resealable, if the product contains multiple servings or includes multiple products purchased in one transaction, while keeping the child-resistant mechanism intact (§300.405).
6. Inspection Consent for TABC
- Authorized employees of TABC, after showing proper credentials to the owner, operator, or person in charge may inspect the premises (§300.103).
- Both manufacturers and retail hemp registrants must now provide written consent for TABC to enter premises to conduct a physical inspection when applying for a license or registration (§300.502).
7. Enforcement & Penalties
- A person commits a violation if the person manufactures, processes, distributes, sells, or otherwise introduces a consumable hemp product into commerce without a license or registration.
- Each day a violation continues or occurs counts as a separate violation when calculating an administrative penalty.(§300.601).
- New prohibited acts include: refusal of inspection, refusal to allow sample collection or photography, refusal to allow copies of records, and aggressive or threatening behavior toward inspectors (§300.602).
- If the department determines that a violation has occurred, the department must issue a notice of violation. The notice must state the facts on which the determination is based. The notice must include an assessment of the penalty (§300.606).
- The notice of violation must be in writing and be sent to the license holder or registrant by certified mail. The notice must include a summary of the alleged violation and a statement of the amount of the recommended penalty and must inform the person of a right to a hearing on the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty.
- Within 20 business days after the date the person receives the notice of violation, the person in writing may accept the determination and recommended penalty of the department or may make a written request for a hearing on the occurrence of the violation, the amount of the penalty, or both the occurrence of the violation and the amount of the penalty.
8. Transport Restriction
The rules add a prohibition on transporting ingredients containing THC above 0.3% into Texas for further processing (§300.404).
These rules are expected to have significant consequences for businesses operating in the Texas hemp industry. The Texas Hemp Business Council believes several provisions exceed the intent of the law and could severely disrupt lawful hemp commerce in the state.
THBC is preparing to challenge the implementation of these rules in court and intends to seek an injunction while the case is reviewed. Legal action of this scale requires substantial resources, and the outcome will depend in large part on the level of support from the industry.
If your business relies on hemp in Texas, we encourage you to consider supporting this effort by becoming a THBC member or making a donation to help fund the legal fight ahead.
